(News Bulletin 247) – The Paris Stock Exchange should remain on its upward trend on Friday morning, as investors seem determined to continue their purchases as the quarterly results season kicks off.
Around 8:15 a.m., the ‘futures’ contract on the CAC 40 index – due at the end of April – advanced by 19.5 points to 7,505 points, suggesting an opening close to, or even above, the psychological threshold of 7,500 points.
Carried by the luxury sector and LVMH in particular, the Parisian market had lined up a fourth consecutive session yesterday and ended the day with a gain of 1.1% to 7480 points, a historic closing level.
The prospect of an upcoming pause in the monetary tightening cycle, in the United States and in Europe, is fueling investors’ risk appetite and steering them towards equity markets
Over the whole week, shortened due to Easter Monday, the CAC 40 is currently showing a weekly increase of around 2%, which brings its rise since the start of the month to 15.5%. ‘year.
Markets are now awaiting the start of the corporate earnings season, and possible good news that would support the upward trajectory that has been underway in recent weeks.
The first real test will come today with the publication of the American banking giant JPMorgan Chase, which will reveal its results at midday, just like its counterparts Wells Fargo and Citi.
According to data from FactSet, the financial companies that make up the S&P 500 are expected to see first-quarter earnings climb 9.1%, the best sector performance of the entire index.
The session also promises to be very lively on the economic front, with the figures for retail sales, import prices, industrial production and consumer confidence in the United States.
In Europe, speakers will learn about the latest data on inflation in France and Spain.
Investors’ current attraction to equity markets is limiting demand for Treasury bonds, as illustrated by the rise in yields on German Bunds and French OATs.
On the other side of the Atlantic, the yield on 10-year Treasuries has fallen to 3.43%.
The dollar continues to suffer from the moderation of inflation in the United States, which dims the prospect of further interest rate hikes, which allows the euro to camp solidly above the threshold of 1.10.
In a climate marked by risk appetite, oil prices continued to rise, with Brent rising 0.2% to 86.3 dollars while US light crude (WTI) gained 0.3% to 82 .4 dollars.
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